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Ratio Analysis Of Sbi

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  • I DESPERATELY NEED THIS PROJECT..PLZ SAVE MY LIFE:'(



    plz mail me this project as soon as u read this..my id is shikhz.7792@gmail.com



    I WILL BE VERY GRATEFUL TO YOU SIR..
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  • I am doing my project on the topic related to Liquidity analysis of a private and a public sector bank for 10 years . Can u plz mail me. My id is jenysadhen@live.com
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  • Plz forward me to this. Plz. partha89.mahanta@yahoo.in
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  • i am doing my final project in sbi and my topic is A study on banking ratio with respect to sbi palakkad branch so could you mail me. My id is vipindas.mathur@gmail.com
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  • Ratio analysis is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items/variables.
  • The liquidity ratios measure the ability of a firm to meet its short-term obligations and reflect the short-term financial strength/solvency of a firm.The higher the current ratio, the larger is the amount of rupees available per rupee of current liability, the more is the firm’s ability to meet current obligations and the greater is the safety of funds of short-term creditors. It is a measure of margin of safety to the creditors. Public utility companies have a very low current ratio, as normally such companies have very little need for current assets. The wholesale dealers, purchasing goods on cash basis or on credit basis for a very short period but selling to retailers on credit basis, require a higher current ratio.Limitations: it is a quantitative rather than a qualitative index of liquidity. Because it takes into account total current assets without making any distinction between various types of current assets such as cash, inventories and so on.Quick ratio: it is a rigorous measure of a firm’s ability to service short-term liabilities.
  • This ratio gives an idea about the long term solvency of the firm i.e. Payment of interest and Repayment of Principal amount of loan.
  • Transcript

    • 1. State Bank of India
      Ratio Analysis
    • 2. How can I make more profits from my money?
      Mr. Dukhiram
    • 3. How can I judge that firm is good or bad?
      Mr. Dukhiram
    • 4.
    • 5.
    • 6.
    • 7. State Bank Group
      SBI Cards & Payment Services Pvt Ltd. (with GE Capital)
      SBI Funds Management Ltd (with Society Generale)
      1992
      1998
      SBI Factors & Commercial Services P Ltd.
      SBI Life Insurance Co.Ltd ( with Cardiff SA)
      1991
      2001
      SBI Capital Markets Ltd.
      SBI DFHI Ltd.**
      2004
      1986
      SBI, SBICI & 7 Associate Banks
      Foreign Subsidiaries & Joint Ventures
      Others - RRBs, UTI-AMC, C-EdgeTech
    • 8.
    • 9. Increase in Business Growth (Deposits by 23.39% and Advances by 23.36%)
      Branch Network crossed 10000 during the year
      Market Share in Deposits increased over March 2007 by 61 bps
      Market Share in Demand Deposits - up at 17.40%
      Increase in Net Profit by 48.18% over last year
      Steady reduction in Cost to Income Ratio at 49.03%
      Strong Growth in International Banking Loan Book by 50.41%
      International Loans contribute 14% of Total Loans
      Mid Corporate exposure crosses Rs 1 laccrores
      Retail Banking – SBI Number One in disbursement of Home Loans
    • 10.
    • 11.
    • 12. SBI Group – Financial Highlights FY08
      Rs in Billion
      Total Income: 683.77 ( 100%)
      Interest Earned: 572.38 (83.7%)
      Non-Interest Income: 8695 (28.53%)
      Interest Expended : 339.83 (49.7%)
      Operating Income : 343.94 (50.3%)
      Employee Expenses 105.97 (15.5%)
      Net Interest Income : 232.55 (34.0%)
      Operating Expenses : 12609 (6.65%)
      Other Expenses: 94.04 (13.75%)
      Provision for Investment Depreciation: 8.29 (1.21%)
      Operating Profit:13107 (31.07%)
      Provision for Loan Losses:17.76 (2.60%)
      Provisions and Contingencies :
      2668 (10.71%)
      Provisions for Std Assets:9.45 (1.38%)
      Profit Before Tax : 10439 (37.54%)
      Other Provisions :0.64 (0.09%)
      Provision for Tax: 3710(21.68%)
      Net Profit: 6729 (48.18%)
      Minority Interest: 253 (-1.2%)
      GroupProfit: 8960 (40.8%)
      (Figures in brackets indicate % to Total Income)
    • 13. What is ratio analysis? I don’t know anything about it.
      Mr. Dukhiram
    • 14.
    • 15.
    • 16.
    • 17.
    • 18. Liquidity Ratio
    • 19. Liquidity ratio
      Comments: As the ideal ratio is 2:1 but public sector companies have a very low current ratio as they have very little need for current assets.
      But liquidity position of bank is not good. Lesser the current ratio , less will be the firm’s ability to meet current obligations
    • 20. Liquidity ratio
      Comments: It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims.
      Bank’s short term solvency is in better position.
    • 21. So should I now invest in this bank as its liquidity ratio is good?
      Mr. Dukhiram
    • 22. PROFITABILITY RATIO
    • 23. PROFITABILITY RATIO
      Comments : Bank’s operating profit is increasing as compared to previous year, it shows that it would ensure adequate return to owners in comparison to previous year.
    • 24. PROFITABILITY RATIO
      Comments : By analyzing gross profit ratio we measure that Bank has a good management as it implies that higher the gross profit to sales, higher will be the good managing power.
    • 25. PROFITABILITY RATIO
      Comments : As the net profit ratio is not increasing at a satisfying level, it would not ensure adequate return to owners as well as it enable the bank to with stand adverse economic conditions.
    • 26. Now profitability of firm is also good so shall I proceed now with my investment?
      Mr. Dukhiram
    • 27. CAPITAL STRUCTURE RATIO
    • 28. Capital structure ratio
      Comments: As it shows that the ratio is decreasing as compared to previous year, it is the danger signal for owners. If the project fails financially, the owners would lose heavily.
    • 29. Capital structure ratio
      Comments: As we can see that the ratio in current year is less than 50%, it shows a danger signal in using excessive debt and also lack of ability to offer assured payment of interest to the lenders.
    • 30. INTEGRATED RATIO
    • 31. integrated ratio
      Comments: As firms earning power ratio is decreasing as compared to previous year, the bank should improve its performance either by generating more sales volume per rupee of investment or by increasing the profit margin per rupee of sales.
    • 32. Q2 net up
      Net profit went up by 40.25% at Rs 2260 crore versus Rs 1611.42 crore.
      Net interest income (NII) also rose by 45% to Rs 5,455.35 as against Rs 3,762.93 crore.
      Consolidated NII was up by 42.53% to Rs 7,518.72 crore from Rs 5,275.12 crore. 
      Net profit rose by 7.87% to Rs 2,378.19 crore from Rs 2,204.56 crore.
      Provision for non-performing assets (NPAs) stood at Rs 911 crore versus write back of Rs 16.5 crore.
      Treasury revenues went up by 32% at Rs 4,314.5 crore versus Rs 3,262.9 crore.
      Banking operations rose by 5.3%.
      Other income was up at Rs 2343.1 crore from Rs 2041.94 crore.
    • 33.
    • 34.
    • 35.
    • 36. Presented by:
      Deepak Verma